Chairman Speech for the 32nd AGM of Kreon Finnancial Services Limited.

To August 26, 2026 The Corporate Relations Department, The Bombay Stock Exchange Limited, Floor No. 25, P.J. Towers, Dalal Street, Mumbai-400001, Maharashtra, India. Dear Sir/Madam, Sub: Chairman’s Speech at 32nd Annual General Meeting Ref: Scrip Code - 530139 Pursuant to Regulation 30 read with Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby enclose the Chairman’s Speech for the 32nd Annual General Meeting of the Company held on Wednesday, August 26, 2026 at 11:00 AM. Kindly take the above in your record. Thanking You. Yours faithfully, For KREON FINNANCIAL SERVICES LIMITED (NIHARIKA GOYAL) Chief Compliance Officer CIN: L65921TN1994PLC029317 StuCred A Division Of (Office) +91-8043570129 KREO N FINNANCIAL SERVICES LIMITED info@stucred.com, info@kreon.in #26, 22nd Street, Rathinam Nagar, Thiruvanmiyur, Chennai - 600041 www.stucred.com, www.kreon.in CHAIRMAN'S ADDRESS 32nd Annual General Meeting Dear Shareholders, Members of the Board, colleagues, partners and all our stakeholders, Good morning, and welcome to the 32nd Annual General Meeting of Kreon Finnancial Services Limited. It is a privilege to address you today, and I thank you for the trust and confidence you continue to place in the Company. FY 2025-26 was an important year for Kreon. We grew our income and lending activity substantially. We returned to profitability. We strengthened our capital position. And we continued building the systems, controls and capabilities expected of a listed and regulated financial institution. But the importance of the year goes beyond the numbers. The results showed us that the technology-led model we have built can scale. They showed us that operating discipline can convert growth into profitability. And they showed us that widening access to finance can go hand in hand with responsible lending, sound risk management and strong governance. The theme of this year's Annual Report is Creating Enduring Value. For us, enduring value is not value created in a single quarter, through a single product or during one favourable market cycle. It is the value of a stronger institution: one that serves customers responsibly, creates opportunity for its people, protects shareholder capital and earns the confidence of regulators, lenders and partners through consistent conduct. Our objective is not simply to grow. It is to build an institution that can sustain growth with discipline. Let me walk you through, heading by heading. A YEAR OF PROFITABLE GROWTH Let me begin with our financial performance. During FY 2025-26, total income increased by approximately 63% from ₹26.65 crore to ₹43.35 crore. Revenue from operations grew by nearly 66% to ₹38.68 crore. Over the same period, total expenses increased by approximately 9%. In practical terms, our income grew far faster than our cost base. This reflects the operating leverage in our technology-led model: as the platform expanded, a meaningful part of the additional income translated into improved profitability. CIN: L65921TN1994PLC029317 StuCred A Division Of (Office) +91-8043570129 KREO N FINNANCIAL SERVICES LIMITED info@stucred.com, info@kreon.in #26, 22nd Street, Rathinam Nagar, Thiruvanmiyur, Chennai - 600041 www.stucred.com, www.kreon.in The Company moved from a net loss of ₹4.14 crore in FY25 to a net profit of ₹7.26 crore in FY26. EBITDA improved from negative ₹44 lakh to positive ₹13.14 crore. Return on Equity improved to 20.12% and Return on Assets was approximately 10%. What gives us confidence is not only the turnaround itself, but the way it was achieved. It was not the result of one exceptional item or a temporary benefit. It came from several improvements working together: the scale-up of lending operations, stronger collections and recoveries, tighter control of operating expenditure and disciplined management of funding costs. This year therefore represents more than a return to profit. It marks our transition towards a more scalable and financially resilient operating model. STUCRED: SCALE WITH A CLEAR PURPOSE StuCred remains at the center of Kreon’s growth and purpose. During the year, we disbursed ₹357.61 crore across approximately 18.9 lakh loans. Disbursement value increased by more than 54% over the previous financial year. Assets Under Management increased from ₹29.72 crore to ₹49.17 crore, a growth of approximately 65.5%. Since StuCred was launched in 2018, cumulative credit extended have crossed 1000 crores. These figures demonstrate scale. But scale alone does not explain why StuCred matters. Students and young adults often enter the financial system without regular income proof, an established credit history or collateral. Traditional underwriting models are not always designed to understand them. StuCred was built around this structural gap, using digital processes, alternate data and behavioural insights to make credit decisions suited to the realities of younger borrowers. For many customers, a StuCred loan may be one of their first interactions with formal credit. That gives us both an opportunity and responsibility. The opportunity is to widen access. The responsibility is to ensure that access remains transparent, proportionate and responsible. That is why we do not view a disbursement as an isolated transaction. We view it as one step in a longer relationship with a customer whose financial needs, behaviour and capacity will evolve over time. CIN: L65921TN1994PLC029317 StuCred A Division Of (Office) +91-8043570129 KREO N FINNANCIAL SERVICES LIMITED info@stucred.com, info@kreon.in #26, 22nd Street, Rathinam Nagar, Thiruvanmiyur, Chennai - 600041 www.stucred.com, www.kreon.in BUILDING A DURABLE CUSTOMER FRANCHISE During the year, StuCred’s registered user base crossed 10 lakhs. Our active user base stood at approximately 3.94 lakh, and more than 2.23 lakh unique new transacting users joined the platform. Our reach expanded to nearly 40,000 colleges across every State and Union Territory in India. One of the most encouraging indicators was the reported customer retention rate of 91%. More than 2 lakh customers were repeat borrowers. Repeat and extension disbursements reached approximately ₹129 crores and represented more than 36% of total disbursement value. These numbers tell us that the relationship is increasingly moving beyond a single transaction. As customers build a history with the platform, our understanding of their behaviour improves. That, in turn, can support better segmentation, more informed underwriting and more appropriate engagement. At the same time, customer acquisition costs remained at approximately ₹96, below our internal ceiling of ₹150. The combination of repeat usage and acquisition discipline is important to the long- term economics of the platform. In financial services, strength is not determined simply by how many customers we acquire. It is determined by the trust, relevance and quality of the relationships we build with them. TECHNOLOGY AS AN ENABLER; TRUST AS THE FOUNDATION Technology has been integral to Kreon’s development from the beginning. As the Company grows, its role is becoming broader. It now supports customer acquisition, loan processing, underwriting, collections, workflow controls, management information and governance. During FY26, we continued strengthening credit assessment through improved bureau filtering and alternate-data analysis. In collections, we introduced AI-based calling for early-stage delinquency. This allows our human collection teams to focus their time and judgement on cases that require deeper engagement and intervention. Across functions, we are using automation to reduce manual dependence, improve turnaround times, strengthen process consistency and provide better real-time visibility. Our approach is deliberate. We do not invest in technology because it is fashionable. We invest where it can improve customer experience, credit outcomes, operating efficiency, c [Showing first 8,000 characters — download PDF for full document]